TORONTO, ONTARIO and BALMAT, NEW YORK, Aug 21, 2008 (Marketwire via COMTEX News Network) --
HudBay Minerals Inc. (TSX:HBM) (HudBay) today announced it plans to close its Balmat, New York zinc mine and concentrator.
As
a result of lower prices for zinc metal, continued high operating costs
associated with the geology of the Balmat mine and general inflationary
pressures, HudBay has determined that its Balmat operation is not
economically viable given current market conditions. The Balmat mine was
reopened in 2005 based on a feasibility plan that assumed lower costs
and higher levels of production than were achieved to date.
"HudBay
would like to recognize the hard work and contributions of this team
over these past three years and thank them for their service and
dedication," said Brad Lantz, Vice-President Mining, HudBay. "We also
extend our sincere appreciation to the entire Balmat community."
The
announcement will affect approximately 200 workers employed
at the Balmat mine and concentrator. Operations are expected to cease on
August 22, 2008. A small group of employees will be retained to keep
the facility on care and maintenance. HudBay will continue to test
geophysical anomalies within its exploration territories in the region
as part of its overall 2008 exploration program announced earlier in the
year. HudBay indicated that affected employees will receive transition
support and the Company will work with employees closely during this
difficult time.
The Company does not expect to incur significant
costs associated with closure. HudBay's total zinc production for 2008,
including Balmat's contribution through the first eight months of the
year, is now expected to be at the lower end of the Company's previously
disclosed production guidance range of 120,000 to 150,000 tonnes of
zinc(1).
(1) Zinc production includes Balmat
payable metal in concentrate shipped.
About HudBay Minerals Inc.
HudBay
Minerals Inc. is a leading Canadian base metals mining company with a
focus on the discovery and production of zinc and copper metal. The
Company is investing for the future in one of the most ambitious
exploration programs in Canada, targeting its 400,000 hectare
exploration territory in the Flin Flon Greenstone Belt. As an integrated
mining company, HudBay operates mines, concentrators and metal
production facilities in northern Manitoba and Saskatchewan, a zinc
oxide production facility in Ontario and the White Pine copper refinery
in Michigan. HudBay is a member of the S&P/TSX Composite Index and
the S&P/TSX Global Mining Index.
Forward-Looking Information
This
news release contains "forward-looking information" within the meaning
of applicable Canadian securities legislation.
Forward-looking information includes, but is not limited to, information
with respect to the closure of Balmat operations, HudBay's future
production, financial results and exploration plans. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects", or "does not
expect", "is expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates", or "does not anticipate", or "believes" or
variations of such words and phrases or state that certain actions,
events or results "may", "could", "would", "might", or "will be taken",
"occur", or "be achieved". Forward-looking information is subject to
known and unknown risks, uncertainties and other factors that may cause
the actual results, level of activity, performance or achievements of
HudBay to be materially different from those expressed or implied by
such
forward-looking information, including risks associated with the mining
industry such as economic factors as they effect exploration, future
commodity prices, actual results of exploration activities, government
regulation and approvals, environmental and reclamation risks, costs,
timing and amount of future production, variations in ore grade or
recovery rates, failure of plant, equipment or processes to operate as
anticipated, permitting timelines, capital expenditures, changes in
project parameters as plans continue to be refined as well as those
factors discussed in the section entitled "Risk Factors" in HudBay's
Annual Information Form for the year ended December 31, 2007, available
on www.sedar.com.
Although HudBay has attempted to identify important factors that could
cause actual results to differ materially from those
contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such information will prove to
be accurate, as actual results and future events could differ materially
from those anticipated in such information. Accordingly, readers should
not place undue reliance on forward-looking information. HudBay does
not undertake to update any forward-looking information, except in
accordance with applicable securities laws.
(HBM-G)
SOURCE: HudBay Minerals Inc.
Media:
HudBay Minerals Inc.
Tom Goodman
Vice President, Technical Services and Human Resources
(204) 687-2380
Email: tom.goodman@hbms.ca
Analysts/Investors:
HudBay Minerals Inc.
Brad Woods, Director, Investor Relations
(204) 949-4272
Email: brad.woods@hbms.ca
Website: www.hudbayminerals.com
Copyright (C) 2008 Marketwire. All rights reserved.
News Provided by COMTEX